A Monopolistically Competitive Firm Is Operating in the Short Run

question 105

Multiple Choice

A monopolistically competitive firm is operating in the short run at the optimal level of output and is earning negative economic profits.Which of the following must be true?

• A)ATC > P > MR = MC.
• B)ATC = P > MR = MC.
• C)ATC > P = MR = MC.
• D)ATC > P > MR > MC.

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